Question

The generic strategy most vulnerable to downturns in the economy is

	a.	Low-Cost, Focus
	b.	Differentiation, Focus
	c.	Differentiation
	d.	Low Cost

Answer 1

The generic strategy most vulnerable to downturns in the economy is low cost, focus strategy and this is because low cost strategy can actually drive the players out of the industry and focus strategy might not give market for other players in that segment as a result of which cdrtain sectors can particularly be affected to a great extent and this can result in the downturn of the economy and that is the reason why

(a) is the answer

differentiation enables competitiveness among the companies as a result of which more innovation is given importance with which economy can go upwards and just low cost strategy might not implement the economic downturn as more demand can be created and that is the reason why

(b,c,d) are wrong